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Payroll Services: Myths & Mistakes
INFORMATIVE 
Tags: business, finance, payroll services, small business, fees, myths
Five mistakes business owners make when choosing a payroll system and five myths about online payroll systems.
| | Mistake #5: Spending too much -- The way to avoid this is to not make your decision based on monthly rate alone. Payroll service prices are a combination of a monthly rate and a fee per employee (usually around $2.00). Some companies charge a low monthly rate but add fees for tax services or direct deposit services. Make sure to ask these payroll service questions when you’re choosing which payroll service provider you’d like to go with. |
| | Mistake #4: Unrealistic expectations - Outsourcing your payroll doesn’t remove all payroll tasks from your business -- each week, employee hours will need to be submitted to the payroll service provider by phone, fax, email, or online. Also keep in mind that selecting an online payroll service will be more of a self-service approach to outsourcing payroll. Before you outsource payroll, decide whether you can delegate weekly tasks within your company or if you will handle them yourself. |
| | Mistake #3: Skipping the demo - Don’t buy something you can’t stand looking at. When it comes down to your top choices, take a quick peek each provider’s demos or screenshots. You don’t want to spend a year working with a product that isn’t easy to use. |
| | Mistake #2: Not shopping around - Request payroll price quotes from multiple payroll service providers. An insurance company in Garland, Texas is paying half the price quoted by the other payroll companies because the winning company offered unlimited payroll processing. |
| | Mistake #1: Trusting the company alone - Hear what others have to say! Request references from the company itself, search for reviews on sites like Epinions or Viewpoints, and find out if there are unresolved consumer complaints on the Better Business Bureau website. |
| | Myth #5: I’ll be on hold forever - Don’t worry, adopting an online payroll service plan doesn’t mean you’ll have to learn to love Muzak. The top online payroll service providers have client service representatives that are available during business hours. There should be a number on the website that you can call to speak directly with someone. |
| | Myth #4 - I won’t be able to change things at the last minute: Quick! Debbie in Sales wants Monday off for those Red Sox tickets she found on Craigslist! Online payroll services can be accessed at any time, so it’s easy to factor in an employee’s last-minute vacation request or generate a customized labor hour report for the past week. Some providers, such as CompuPay, even offer customizable online payroll service plans that provide job costing reports, worker’s compensation reports, and other special reports. |
| | Myth #3 - They won’t file my taxes on time: The IRS has published a webpage of approved payroll service providers which have passed the IRS Assurance Testing System (ATS) and/or Business Acceptance Testing (BATS) requirements for Software Developers, Reporting Agents, and Transmitters of electronic business returns. Online payroll services are offered by several of the listed companies. |
| | Myth #2 - Data is less secure if it’s online: Data security is a serious concern for any business just as it is for the average Joe. Several companies employ extensive data security efforts not only for the sake of clients’ data but for the wellbeing of their own company. SurePayroll uses encryption to safe lock employees’ social security numbers and other confidential information, unique identifiers for phone calls, multiple layers of firewalls, and a physical data center that is monitored 24 hours a day, seven days a week. |
| | Myth #1 - If the Internet goes down, no one’s getting paid: Ah, the grand-daddy of all online payroll myths. Gasp! A down Internet connection! Papers start flying, coffee cups burst into flame and the CEO begins to fashion a noose from the cord of her mouse. All because everyone knows that online payroll simply can’t be done when the Internet is down. |
| | Wrong. The biggest advantage to an online payroll system is that it’s mobile. Which means that if your office Internet connection is down, you can still access your payroll system from any computer in any location with Internet connection. You can even complete payroll on your iPhone, iPad, or iTouch with the SurePayroll Mobile Payroll App. |
Lister:
SylviaJacq
Source:
BuyerZone - Payroll Services
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